Johnson Controls 2015 Annual Report Download - page 89

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89
as part of the divestiture-related losses recognized within discontinued operations as a result of the divestiture of the Automotive
Experience Electronics business.
** Refer to Note 10, "Derivative Instruments and Hedging Activities," of the notes to consolidated financial statements for
disclosure of the line items on the consolidated statements of income affected by reclassifications from AOCI into income related
to derivatives.
*** Refer to Note 11, "Fair Value Measurements," of the notes to consolidated financial statements for disclosure of the line item
on the consolidated statements of income affected by reclassifications from AOCI into income related to marketable common
stock.
**** Refer to Note 15, "Retirement Plans," of the notes to consolidated financial statements for disclosure of the components of
the Company's net periodic benefit costs associated with its defined benefit pension and postretirement plans. For the year ended
September 30, 2015 the amounts reclassified from AOCI into income for pension and postretirement plans were primarily recorded
in selling, general and administrative expenses and income (loss) from discontinued operations, net of tax on the consolidated
statements of income. For the year ended September 30, 2014, the amounts reclassified from AOCI into income for pension and
postretirement plans were primarily recorded in cost of sales and income (loss) from discontinued operations, net of tax on the
consolidated statements of income. For the year ended September 30, 2013 the amounts reclassified from AOCI into income for
pension and postretirement plans were primarily recorded in selling, general and administrative expenses and income (loss) from
discontinued operations, net of tax on the consolidated statements of income.
15. RETIREMENT PLANS
Pension Benefits
The Company has non-contributory defined benefit pension plans covering certain U.S. and non-U.S. employees. The benefits
provided are primarily based on years of service and average compensation or a monthly retirement benefit amount. Effective
January 1, 2006, certain of the Company’s U.S. pension plans were amended to prohibit new participants from entering the plans.
Effective September 30, 2009, active participants continued to accrue benefits under the amended plans until December 31, 2014.
Funding for U.S. pension plans equals or exceeds the minimum requirements of the Employee Retirement Income Security Act
of 1974. Funding for non-U.S. plans observes the local legal and regulatory limits. Also, the Company makes contributions to
union-trusteed pension funds for construction and service personnel.
For pension plans with accumulated benefit obligations (ABO) that exceed plan assets, the projected benefit obligation (PBO),
ABO and fair value of plan assets of those plans were $2,465 million, $2,464 million and $2,065 million, respectively, as of
September 30, 2015 and $3,413 million, $3,363 million and $2,642 million, respectively, as of September 30, 2014.
In fiscal 2015, total employer contributions to the defined benefit pension plans were $407 million, of which $317 million were
voluntary contributions made by the Company. The Company expects to contribute approximately $113 million in cash to its
defined benefit pension plans in fiscal 2016. Projected benefit payments from the plans as of September 30, 2015 are estimated
as follows (in millions):
2016 $ 269
2017 228
2018 227
2019 236
2020 243
2021-2025 1,295
Postretirement Benefits
The Company provides certain health care and life insurance benefits for eligible retirees and their dependents primarily in the
U.S. and Canada. Most non-U.S. employees are covered by government sponsored programs, and the cost to the Company is not
significant.
Eligibility for coverage is based on meeting certain years of service and retirement age qualifications. These benefits may be
subject to deductibles, co-payment provisions and other limitations, and the Company has reserved the right to modify these
benefits. Effective January 31, 1994, the Company modified certain salaried plans to place a limit on the Company’s cost of future
annual retiree medical benefits at no more than 150% of the 1993 cost.